US electronics retailer Best Buy (NYSE:BBY) saw shares soar nearly 20 percent this morning after quarterly profits smashed expectations.
Performance was driven by wearables such as Fitbits and smartwatches, becoming one of the first US electronics retailers to report positive figures for this quarter.
Online sales increased to 10.6 percent in the second quarter, with sales in-store increasing by 0.8 percent on a year earlier. Revenue rose to $8.53 billion, above analysts’ estimates of $8.40 billion.
Other US electronics retailers, including Target and Wal-Mart, have struggled in the last quarter, largely due to a slowdown in demand for mobile devices ahead of new product releases in the autumn. Best Buy said they benefitted from holding a larger share of the market for household appliances and home theatre systems than other retailers.
Best Buy is currently trading up 17.59 percent at 38.57 (1606GMT).